Bank of England

Bank of England deputy governor Charlie Bean has defended MPC policy in the face of persistently high inflation, warning the economy could be on the verge of a "durable slowing".

Bank of England governor Mervyn King has not ruled out another round of quantitative easing and has reiterated his belief the UK recovery will be choppy.

The oil price could surge to $220 a barrel and thwart the global economic recovery, according to Nomura.

M&G's bond vigilante Matthew Russell explains why inflation expectations should not influence the increasingly hawkish MPC on rate rises.

ODDS SHORTEN ON MARCH RATE HIKE

Monetary Policy Committee (MPC) hawk Andrew Sentance is calling for a 0.5% rise in the Bank of England base rate, a greater hike than he has lobbied for previously.

The Chancellor has defended the Bank of England over rising inflation and denied the government is making its job more difficult.

Sterling fell against the dollar and the euro after the Bank of England downgraded its economic growth forecast for 2011.

A series of quarter-point interest rate hikes will begin in May, according to analysts examining Bank of England governor Mervyn King's latest obligatory letter to the Chancellor.

The UK inflation rate rose to 4% in January, which is double the government's target and up from 3.7% the previous month.